Pakistan’s Middle East Exports Decline by 8% Due to Regional Tensions

Pakistan’s Middle East Exports Decline by 8% Due to Regional Tensions

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Pakistan’s exports to Middle Eastern countries declined by 8% year-on-year in April, reflecting the growing impact of regional tensions on trade activity with one of Pakistan’s key export destinations.

According to central bank data, exports to the region dropped to $230.079 million during the month. Shipments to major markets including the UAE, Qatar, Kuwait, Bahrain, and Jordan recorded noticeable declines, while exports to Saudi Arabia showed only limited growth, indicating weaker trade momentum overall.

In contrast, Pakistan’s imports from the Middle East increased by 5% in April, reaching $1.548 billion compared to $1.474 billion during the same period last year. The increase was mainly driven by higher imports from the UAE, Kuwait, and Jordan, although imports from Saudi Arabia, Qatar, and Bahrain decreased during the month.

The changing trade pattern highlights Pakistan’s dependence on the Middle East, particularly for energy imports. Saudi Arabia and the UAE together contribute nearly 90% of Pakistan’s energy imports from the region, while Qatar, Kuwait, Oman, and Bahrain account for smaller shares.

During the first ten months of FY2025-26, Pakistan’s exports to the Middle East fell 2% to $2.635 billion, down from $2.676 billion recorded in the same period last year. Imports from the region also declined by 3% to $13.898 billion, helping reduce the trade deficit by 4% to $11.263 billion during July-April.

Trade figures with Saudi Arabia remained mixed throughout the fiscal year. Exports to the kingdom dropped 4% during the first ten months to $583.94 million, although April figures showed slight improvement. Imports from Saudi Arabia rose 4% overall during FY26 but declined 2% in April compared to last year.

Trade with the UAE also presented mixed trends. Exports to the UAE increased slightly by 0.35% during the July-April period, reaching $1.786 billion, while April exports alone fell 7% year-on-year. Imports from the UAE climbed 5% during the fiscal year and surged 30% in April.

Among smaller regional trading partners, exports in April dropped sharply by 39% to Bahrain, 21% to Qatar, 36% to Kuwait, and 26% to Jordan. On the import side, purchases from Bahrain and Qatar declined significantly, while imports from Kuwait and Jordan increased.

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Syed Sadat Hussain Shah

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